Business, 22.03.2022 18:10 queenskmk1628
Utilize the AICPA website to respond, however to respond to this case, please consult not only auditing standards (AU-C), but also the AICPA’s revised Code of Conduct.
Facts: Tim Smith is an audit partner in a CPA firm, and Tim recently invested in a diversified mutual fund managed by Fidelity Investments. He owns less than 1% of the total shares outstanding of the mutual fund itself. One of the mutual fund’s holdings is shares of Lava Corp. Lava Corp is one of Tim’s clients and is a nonpublic company.
Required: What guidance tells Tim that he must be independent of Lava Corp, and does his investment impair his firm’s independence on this audit? Respond to these questions in the form of an issues memo. Explain your analysis, citing from the guidance to support your response. If the guidance states that a “covered member” must be independent, you will need to define covered member to fully explain your analysis. Make a clear, reasoned argument, using a logical discussion of relevant guidance. You can use the following headers to begin your response.
Issue 1: What guidance requires Tim to be independent of Lava Corp?
Issue 2: Does this investment impair Tim’s firm’s independence on this audit?
Answers: 1
Business, 21.06.2019 19:50
The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?
Answers: 2
Business, 22.06.2019 08:00
Interest is credited to a fixed annuity no lower than the variable contract rate contract guaranteed rate current rate of inflation prime rate
Answers: 2
Business, 22.06.2019 11:00
Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]
Answers: 3
Business, 22.06.2019 12:10
The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:
Answers: 3
Utilize the AICPA website to respond, however to respond to this case, please consult not only audit...
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